Indong Tea Company IPO Details & Guidance

    Grey Market News for Indong Tea Company IPO #Indong Tea Company ipo

    Indong Tea Company IPO Guidance
    The grey market is in cold storage and the attraction to sell in grey market is gone. So one has to decide about applying just based on the fundamentals of any IPO. Tea business is cyclical business and there may be sharp ups and downs in the profitability of this company. In 2019-20 the company had shown losses and then in next two years, it made good profits. The Offer at Rs. 26 per share is reasonable, if this profits continue even in the coming years. IPO size is marginally higher. Considering some risk, you may apply in this IPO. Huge returns are not expected.

    Indong Tea Company IPO Subscription Status
    On 13 February 2023 @ 5.00 pm (Closed)
    NII:      2376000  Shares,  2.17T
    RII:      2376000  Shares,  7.76T
    Total:   4752000  Shares   4.97T

    Indong Tea Company IPO Details
    IPO Dates   09-02-2023 to 13-2-2023
    Face Value  Rs 10 per share
    IPO Price    Rs 26 per share
    Lot             4,000 Shares
    Issue Size  50,04,000 shares of Rs 10
    Issue           Rs 13.01 Cr)
    # Fresh Issue 50,04,000 shares of Rs 10/Rs 13.01 Cr
    # Offer for Sale – shares of Rs 10/ Rs – Cr
    Issue Type Book Built IPO
    Listing At BSE SME
    Objects of the IPO
    A. Funding Capital Expenditure towards Extension, Uprooting and Infilling of Tea Plantation at Indong Tea Estate, Jalpaiguri, West Bengal
    B. Funding Capital Expenditure towards installation of additional plant and machinery for Tea Processing Unit at Indong Tea Estate, Jalpaiguri, West Bengal
    C. To meet the working capital requirements.

    Retail Offer: 50 % / 23,76,000 Shares
    RII Min. Application: 4,000 Shares, Rs. 1,04,000
    RII Max. Application: 8,000 Shares, Rs. 2,08,000
    594 Applications required for onetime RII-subscriptions.

    Indong Tea Company IPO Timetable 
    IPO Opening Date:     February 09, 2023
    IPO Closing Date:       February 13, 2023
    Basis of Allotment:     February 16, 2023
    Initiation of Refunds:  February 17, 2023
    Credit of Shares:         February 20, 2023
    IPO Listing Date:         February 21, 2023

    Indong Tea Company Business:
    Indong Tea Company Limited incorporated in the year 1990, owns and operates a Tea Garden under Government lease and is engaged in Tea Plantation & Manufacturing of CTC Tea at Indong Tea Estate situated at Jalpaiguri District of West Bengal. The Indong Tea Estate is spread over an area of 740.38 Hectares which comprises of Tea Plantation, Tea Factory, Withering Trough House, Officer’s Bunglow, Staff Quarters, Labour Quarters, Pump House, General Stores, Dairy Farm etc.
    The original Promoter of our Company was Devvrat Gupta, Shyam Saran Gupta and Nagarmal Kanoria. The main business of the company is manufacturing of Tea. The Company is having one Tea Garden i.e., Indong Tea Estate which is producing high quality CTC tea in Dooar’s region of Jalpaiguri District of West Bengal.

    In the year 2014, the Company was taken over by Asian Group promoted by Sri Hariram Garg. Under his Leadership, our company has achieved the economic viability by way of massive investments in all spheres while at the same time taking a keen interest in the welfare of the workers. He invested fresh capital and installed new machinery which resulted in high yield from the plantations produced.
    Indong is a magnificent Tea Garden in Western Dooars perched in the foothills of Himalayan Range. Blessed with a bracing climate and a panoramic view of the mountains and meandering rivers, the garden was founded over a century ago by the British Planters under the famous Gillanders & Arbuthnot & Co. Even today, the garden retains many of the British legacies.
    For more information about the company, Click Website:
    www.indongteaco.com

    Business Summary: 
    Promoters of Indong Tea Company

    (I) MR. HARIRAM GARG, (II) MR. MADANLAL GARG AND (III) M/S. ASIAN TEA & EXPORTS LIMITED

    Registered office of Indong Tea Company
    Sikkim Commerce House, 4/1, Middleton Street, Kolkata – 700071, West Bengal, India
    Company Secretary and Compliance Officer: Mr. Chandan Gupta

    Lead Manager of Indong Tea Company
    Finshore Management Services Ltd
    Registrar to the IPO of Indong Tea Company
    Cameo Corporate Services ltd

    SME IPO Financial & Analytical Ratios#
    Total Income 2019-20             Rs 16.73 Cr
    Total Income 2020-21             Rs 23.13 Cr
    Total Income 2021-22             Rs 19.93 Cr
    Net Profit 2019-20                  Rs (1.21) Cr
    Net Profit 2020-21                  Rs 1.27 Cr
    Net Profit 2021-22                  Rs 1.32 Cr
    Earnings per Share 2019-20   Rs (2.37)
    Earnings per Share 2020-21   Rs 2.50
    Earnings per Share 2021-22   Rs 2.12

    Return on Net Worth: 19-20: – %
    Return on Net Worth: 20-21: – %
    Return on Net Worth: 21-22: 15.24 % 
    Book Value of the Share as on 31.03.22 Rs 13.94
    NAV after the IPO Rs. 19.33
    Offer Price Rs. 26

    IPO Peer Comparison:
    Tata Consumer Products @ PE Ratio of 80.88
    Goodricke Group @ PE Ratio of 82.23
    Dhunseri Tea & Industries @ PE Ratio of 0.00
    Neelamalai Agro Industries @ PE Ratio of 48.23

    Observation
    by Paresh Gordhandas (Research Analyst)

    Will be updated soon

    # This is only coverage of News related to Grey Market. We do not deal in grey market premium or Subject to rates, nor we recommend dealing in Grey Market. Investment decision based on Grey Market trends can be faulty.

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